USA: ExxonMobil Adds 2.7 Billion Barrels To Fuel Reserves

Exxon Mobil Corporation has declared that 2.7 billion oil-equivalent barrels of proved oil and gas reserves has been increased in 2017, replacing 183 percent of production.

Proved reserves totaled 21.2 billion oil-equivalent barrels at year-end 2017. Up from 53 percent in 2016, 57 percent of the reserves represented liquids. At current production rates, ExxonMobil’s reserves life is 14 years.

Darren W. Woods, chairman and chief executive officer, said “Our exploration success and strategic acquisitions made during a period of low commodity prices are adding high-quality resources that are among the lowest cost of supply in the industry. ExxonMobil’s portfolio of development opportunities positions us to grow shareholder value as we bring on new supplies of oil and natural gas to meet growing demand.”

Proved additions in Abu Dhabi totaled more than 800 million barrels of crude oil, for the period of 2017. Approximately 800 million oil-equivalent barrels totaled additions from liquids-rich unconventional plays in the United States. By 2025, ExxonMobil’s growth plan and increased drilling activity is expected to increase daily production to more than 600,000 oil-equivalent barrels.

Other significant new proved reserve additions were made in Guyana. ExxonMobil has discovered recoverable resources, offshore Guyana, likely to be 3.2 billion gross oil-equivalent barrels.

ExxonMobil reports reserves based on the average of the applicable market price prevailing on the first day of each calendar month during the year, consistent with SEC requirements. About 900 million oil-equivalent barrels in North America qualified as proved reserves under SEC guidelines due primarily to the extension of the projected economic end-of-field-life, due to higher prices in 2017 relative to 2016.

9.8 billion oil-equivalent barrels was added by ExxonMobil, to its resource base in 2017 through by-the-bit exploration discoveries and strategic acquisitions, resulting in the largest addition to the resource base since the acquisition of XTO Energy in 2010. Proved reserves, plus other discovered resources include the resource base that are expected to be ultimately recovered.

With the acquisition of interest in the two billion gross oil-equivalent-barrel Carcara field, key resource additions were also made in deepwater Brazil pre-salt, onshore Papua New Guinea with the acquisition of InterOil Corporation, and Mozambique with the purchase of an interest in Area 4.